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Experienced Member

How do I trade an asset on a lease when asset has a loan balance and not depreciated out?

Entered a lease agreement that included trading an asset in for 140,000 that had a loan payoff of 105,000. How do I  record the trade of this asset? 

 

Thank you!

4 Comments
Established Community Backer ***

Re: How do I trade an asset on a lease when asset has a loan balance and not depreciated out?

please clarify how the 'asset' is currently recorded in your books: are there fixed asset and accumulated depreciation amounts on the balance sheet - in addition to the loan?
Experienced Member

Re: How do I trade an asset on a lease when asset has a loan balance and not depreciated out?

It is a fixed asset that has depreciated value of 60,000.

Experienced Member

Re: How do I trade an asset on a lease when asset has a loan balance and not depreciated out?

It is a fixed asset that has a loan balance of 105000 and depreciated value of 62000.

Experienced Member

Re: How do I trade an asset on a lease when asset has a loan balance and not depreciated out?

Trade value given was also $140,000.